For Immediate Release
Office of the Press Secretary
September 22, 2003

Fact Sheet: White House Office of Faith-Based and Community Initiatives

Today's Action:

The Administration today eliminated more barriers that have kept
faith-based charities from partnering with the Federal government to
help Americans in need. Four new regulatory actions previously
announced in Philadelphia in December 2002 were finalized, and six new
regulatory or policy changes were proposed. In addition, over $30
million in new Compassion Capital Fund (CCF) grants were awarded to 81
organizations to provide technical assistance and increase the capacity
of faith-based and community organizations that work with the homeless,
addicted, and other Americans in need.

Background:

During his first week in office, President Bush directed the White
House Office of Faith-Based and Community Initiatives (OFBCI) to
identify barriers that kept effective faith-based programs from
servicing Americans in need. In August 2001, OFBCI issued a report
documenting regulatory and administrative barriers that discriminated
against faith-based groups in the Federal grants process. In
response, in December 2002, the President issued an Executive Order
(EO) directing agencies to take steps to ensure that all policies
(including guidance, regulations, and internal agency procedures) are
consistent with the "equal treatment" principles enunciated in the EO.
At that time, the President also announced proposed regulations from
the Department of Housing and Urban Development (HUD) and the
Department of Health and Human Services (HHS). Today, the President
met with Secretary Mel Martinez of HUD, Secretary Elaine Chao of the
Department of Labor (DOL), and four representatives of other Cabinet
agencies. The Cabinet members announced the finalization of those
regulations, and also proposed new regulations at DOL, the Department
of Education (DoEd), the Department of Veterans Affairs (VA), and the
Department of Justice (DOJ) in furtherance of the President's EO.

Final Rules

HHS finalized regulations implementing the Charitable Choice laws
for the Substance Abuse and Mental Health Services Administration
(SAMHSA), the Temporary Assistance for Needy Families (TANF) program,
and the Community Services Block Grant (CSBG) program, providing access
for faith-based organizations to nearly $20 billion in social service
grants. These laws have been in effect since as early as 1996.

HUD finalized regulations that apply to eight HUD programs and will
make faith-based groups eligible to compete for $8 billion in HUD
grants. These regulations put into effect the principles set out in
the President's Executive Order on Equal Treatment by repealing
regulations that prohibited religious organizations from participating
in certain programs ? even those focusing on "secular activities."
These final regulations clarify that HUD funds may not be used for the
acquisition, construction, or rehabilitation of a sanctuary, chapel, or
other room that a religious organization uses as its principal place of
worship. Under the old regulations, when Orange County Rescue Mission
in Los Angeles applied for HUD funding, they were told that they needed
to form a secular nonprofit, ban all religious activity from their
facility, and call their chapel an "auditorium." After the regulations
are finalized, groups like Orange County Rescue Mission will be able to
apply for HUD funds while maintaining their religious identity. They
will be able to expand their work in providing housing and supportive
services to the homeless and make increased homeownership a reality.

New Proposed Rules

DOJ and DoEd today proposed new regulations to ensure that no
organization or beneficiary will be discriminated against in a
Federally funded social service program on the basis of religion. The
regulations restate the principle that organizations cannot use
government funds to support "inherently religious" activities, such as
worship, religious instruction, and proselytization, and they clarify
that organizations that receive Federal funds may retain their
religious identity, including the display of icons, symbols, and
selection of board members on a religious basis. These same "equal
treatment" provisions are being finalized at HUD today.

The DoEd regulations will apply to all of its Federally
administered and State-administered grant programs. For example,
faith-based organizations will now be able to apply for funding for
community technology centers that provide disadvantaged residents of
economically distressed urban and rural communities with access to
information technology and training. The proposed regulations also
apply to funding for mentoring at-risk children to improve academic
achievement and reduce the dropout rate. Many faith-based and
community organizations operate such programs.

DOL proposed changes to its regulations under the Workforce
Investment Act (WIA), which gives State and local Workforce Investment
Boards (WIBs) the ability to provide flexible job training through
Individual Training Accounts (ITAs), which function as vouchers for
those seeking job training. Current training providers in the Memphis
area, for example, that are eligible for WIA funds include barber
schools, truck driving academies, and food service instructors. Under
the proposed regulation, program beneficiaries seeking to be employed
at a church, synagogue, or other faith-based organization will be able
to use their ITA to obtain religious training services in consultation
with a case manager at their local One-Stop program, provided that the
training is the result of private, independent choice and the training
provider chosen is on the State or local list of eligible providers.

DOL also proposed final rules to implement the President's EO that
protected the religious hiring rights of exempted Federal contractors.

DOJ proposed changes to its asset forfeiture policy under which the
government gives forfeited assets of $50,000 or less in value to
community groups for social services, such as low-income housing and
community centers. Under the old policy, non-religious entities
receiving property must use the property for specific purposes for five
years. In addition to this five-year limitation, religious entities
must also agree not to use the property for religious purposes, in
perpetuity. The new policy treats religious and non-religious
non-profits equally, so that all groups will agree to limit use of the
property to a specific social service purpose for five years. This new
policy will apply to two pending transfers to faith-based
organizations: St. Raphael's Hospital in New Haven, CT, for a
community health facility, and the New Life Evangelistic Center in
Brooklyn, IL, for a homeless shelter and community outreach center.

VA proposed changes to its regulations that require religious
organizations serving homeless veterans to certify they will exert "no
religious influence" and to forfeit their religious hiring rights; the
new regulations track equal treatment principles of the President's EO
and allow religious organizations to retain their hiring rights
protected by the Civil Rights Act.

Compassion Capital Fund Awards

HHS today awarded $30.5 million in grants to 81 organizations that
will use these funds to provide technical assistance and sub-grants to
faith-based and community organizations in 45 states. President Bush
created CCF to help groups build capacity and better serve Americans in
need. This is the second year of CCF awards. Last year, $24 million
was awarded to 21 groups.